More Wall Street Love Sends Chipotle Stock to New High

Call buying has picked up on Wendy's in recent weeks

by Josh Selway

Published on Jul 29, 2019 at 3:02 PM

U.S. stocks are trading mixed before this week's Fed meeting. In the meantime, we're checking out the moves from restaurant names Chipotle Mexican Grill, Inc. (NYSE:CMG), Jack in the Box Inc. (NASDAQ:JACK), and Wendy's Company (NASDAQ:WEN). Here's how the shares of CMG, JACK, and WEN are trading today.

Analysts Keep Betting on CMG Shares

Wall Street is absolutely gushing over CMG stock following the company's strong quarterly earnings report last week. The shares are up 2.8% today at $802, and earlier hit an all-time high of $811.95, after Goldman Sachs set a $1,000 price target and added CMG to Goldman's conviction buy list. Citigroup wasn't far behind, setting a $955 price target, saying the company's leadership can find more ways to keep the growth going.

Chipotle stock has been a standout in 2019, now up roughly 86%. Weekly call traders are moving in during today's session, and the 8/2 series is leading the way by far. The 800-, 810-, 815-, and 820-strike calls are all seeing new positions opened. In fact, call volume is running near an annual-high pace.

JACK Stock In Danger of More Bear Notes

JACK stock isn't so fortunate today, down 1.9% at $74.30, after Goldman Sachs called it a "sell." This keeps Jack in the Box near its 52-week lows, with the shares sliding almost 11% in the past six months. Despite the equity's longer-term struggles on the charts, 70% of covering analysts see the shares as a "strong buy," suggesting there's room for more bear notes. Many short sellers have already moved in, with 14.5% of the float dedicated to short interest. Going by average daily trading volumes, this would take 6.5 days to buy back.

Wendy's Call Buying Picks Up

Wendy's stock is also in the red after being cut to "sell" at Goldman Sachs, last seen down 2% at $18.56, setting it up for its lowest close since early June. The shares recently made a notable move below their 50-day moving average, though the $18-$18.50 region -- home to previous highs from the past year -- could step up as support.

Options data is very light on the fast food concern, but those who have been betting in WEN's options pits have preferred calls. The 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 10.79 ranks in the 94th annual percentile.


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